How does data compression impact database performance in DB2?

Data compression in DB2 can improve database performance by reducing the amount of data that needs to be stored, transferred, and processed. With smaller data footprints, compression can lead to faster query execution times, reduced I/O operations, and improved memory utilization, resulting in overall performance enhancements. However, the impact of compression on performance may vary depending on factors such as the compression algorithm used, data characteristics, and workload patterns. Properly configured compression strategies can effectively balance storage savings with performance considerations in DB2 environments.